Dear Clients,

We are pleased to inform you that on January 11, 2024, the US Securities and Exchange Commission (“SEC”) granted approval for the launch of 11 new Bitcoin Exchange-Traded Funds (ETFs). This regulatory green light allows investors to gain exposure to Bitcoin through ETFs traded on US stock exchanges, offering a convenient and traditional investment route, like other securities and financial assets. Importantly, this means investors can participate in the crypto market (with respect to Bitcoin) without the necessity of maintaining a digital wallet, through their common investment accounts.

We anticipate that this significant development in the US financial landscape may extend to the Israeli market, presenting a substantial business opportunity for both global fund managers looking to register their Bitcoin ETFs in Israel, and for the public in Israel that will now be able to purchase these ETFs through their exchange members and bank accounts.

Our firm has vast experience in representing global fund managers with the Israel Securities Authority and the Tel Aviv Stock Exchange (“TASE”). We work with the majority of the global fund managers currently registered in Israel and are the only firm to list ETFs on the TASE.

We are studying the SEC’s decision and will be happy to assist fund managers or their representatives in considering the feasibility of registering funds with similar characteristics on the TASE.